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2008 April 2   08:42

Nakhodka Sea Fishing Port OJSC starts reconstruction valued at $90 million

Nakhodka Sea Fishing Port OJSC (Primorsk Territory) has started a large-scale reconstruction scheduled for 3 years, Interfax reports according to Gudok.ru. Berth modernization and acquisition of handling equipment is valued at $90 million. The project envisages conversion of five berths into a container terminal. At the first stage it is planned to dismantle the existing warehouses. The tender for dismantling of 11 facilities has been announced for construction companies of Primorje.

The issue on transfer of water mains outside the port’s territory is currently under consideration.  This territory is to be occupied by 1,500-tonne cranes, which may threaten normal operation of water lines. According to Sergei Shindenkov, the company’s Director General, the design capacity of the container terminal is some 400,000 TEU. Mr. Shindenkov also said the new activities are not to push out the port’s traditional cargo. As of today, transshipment of fish and sea food account for 4-5%, which is 50,000-70,000 tonnes per year.

The company also intends to continue transshipment of pipes, cement and metal while it plans to cease transshipment of timber. The berths occupied with timber are to be cleared by June to be prepared for the reconstruction. The majority of resources needed for reconstruction will be raised from foreign investors. "A delegation from Korea has recently visited the port for negotiation with the port’s management. The negotiation resulted in achievement of mutually beneficial terms", the report reads.

Earlier the Far Eastern Transport Group holding the control stake of Nakhodka Sea Fishing Port announced Busan Port Authority (BPA, S. Korea) intended to invest $109 million into construction of a container terminal in Nakhodka. Nakhodka Sea Fishing Port will also invest its own resources raised from the company’s income and additional issue.

As it was reported earlier, on August 22, 2007, the company’s shareholders made a decision to increase the authorized capital through placement of 5 million of ordinary shares with a nominal value of 40 rubles. Shareholders of Nakhodka Sea Fishing Port acquired 24,599 shares. If all the shares of the additional issue are placed the authorized capital will grow 4.7 times. The project’s payback period is to make 5 years. Far Eastern Transport Group owns 88% Nakhodka Sea Fishing Port.

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